Puerto Rico Economic Pulse ©

March 2003: Fast Forward: Can the economy hold?

A review of the PR economy in fiscal 2002 and forecast for 2003 to 2005

Fiscal year 2002 is gone but its awful saga is lasting more than expected and now, the war against Iraq is pounding further the world economy. September 11, a staggering stock market, and worldwide political unrest are the culprits of the slump. Puerto Rico posted negative GNP growth in 2002, the first since 1983. Find out which economic sectors were the winners and losers last year. What are the forecasts for fiscal 2003 to 2005? Will growth be positive or heading for negative territory? Will unemployment and inflation rise as the war drags on? Find out what crossroads the economy and you may be facing.

Puerto Rico Economic Pulse ©

February 2003: The Pharmaceutical Industry – Part II

Its contribution to innovation, education, and the environment in PR

In our previous issue, we explored how the pharmaceutical industry in Puerto Ricocontributed to the overall economy in terms of production, exports, investment, jobs, and compensation. This issue links the industry to innovation and technology as well as its contribution to the community and the environment. As before, these facts come from government published data as well as from a survey sponsored by the Pharmaceutical Industry Association (PIA) in PR. Find out how Puerto Rico is on the cutting edge of pharmaceutical production with the latest technologies, processes, and latest generation in drugs and why is the pharma industry heavily involved with higher education in Puerto Rico.

Puerto Rico Economic Pulse ©

January 2003: The Pharmaceutical Industry – Part I

Facts you didn’t know about the contribution of this industry to PR

The pharmaceutical industry has been in Puerto Rico for over three decades, in good and not so good times. Yet, in every instance, the industry has contributed to production, jobs, compensation, and technology. It is well known as one of the largest exporters on the Island. Check the facts of how the pharmaceutical industry has contributed to the economy, to human resources, to innovation and technology, and finally, its support to the community and the environment. This and the forthcoming issue of Economic Pulse highlight the contribution of a successful industry to the Island’s economy.

Puerto Rico Economic Pulse ©

December 2002: Coping with 2002

An analysis of Puerto Rico’s top economic news during the year

A tough year is ending. The saga of 2001, a year marked by terrorism and battered stock markets, has lasted more than expected. PR’s economy has not been indifferent to a jolted US economy and a phantom of recession and deflation hanging all over the world.It has been a hard year for the island, featuring higher excise taxes, less tourists, higher unemployment, and a great effort by the government to crank the economy by investing in public infrastructure. Find out what were the foremost developments of this year, what happened to important sectors, such as manufacturing and construction, and a search for a vision for the next decades.

Puerto Rico Economic Pulse ©

November 2002: Our Older Puerto Ricans – Part II

On the economic and social implications of an older population

As in other parts of the world, Puerto Rico’s population is growing older. Dramatic structural changes in population pose a big challenge to the public sector and overall society.  Social security programs, health services, public finances: the effects of these changes will touch every component of our society. In this issue, we focus on the evolution of the older segment of population, people aged over 65. We briefly portray our elderly people and analyze the implications of having an older population. Find out whether gender has an impact on this group; how wealthy or poor they are; who bears the burden of an aging population. Will PR be able to meet some of the challenges lying ahead.

Puerto Rico Economic Pulse ©

October 2002: PR Looks in the Mirror – Part I

On the most relevant findings of the 2000 Census of Population in PR

Conducting a Census is the best way to portray a country. It lets us know where we come from and where we are going, what we are and what we need. The 2000 Census of Population sheds light on the most important socioeconomic features of Puerto Rico, in some cases confirming already well known trends, but also disclosing unknown facts. Find out how age poses economic as well as social challenges; how demographics impact housing and car sales. This edition examines some of the most recent and relevant demographic issues Puerto Rico faces and their implications for the Island economy in the short as well as the long run.

Puerto Rico Economic Pulse ©

September 2002: How Can the US Economy Recover?

An analysis of US business fixed investment during the 1990’s

For the US economy, the booming 1990`s have gone and the ensuing short recession is now almost over. On the whole, analysts are persuaded that there is a strong causal link between business investment on information technology and labor productivity. The thinking is that cheaper computer capital replaced more relatively expensive non-computer capital to the extent that the production process allowed. Is that so? Have computers been the whole story of the 90`s investment expansion? And to what extent has business investment activity been quantitatively and qualitatively different from past cycles? Will investment drive the US recovery? Let`s examine these questions.

Puerto Rico Economic Pulse ©

August 2002: Carmania in Puerto Rico

Trends in the Puerto Rican Car Market

As of 2001, there were over two million motor vehicles registered in Puerto Rico, equivalent to 1.7 persons per vehicle. According to industry experts, Puerto Rico is a perfect place to introduce new products. Although sales of new vehicles have grown at an annual rate of 1% between 1995 and 2001, the levels of the last two years exceeded those of 1995. Despite an economic slowdown, local consumers bought 123,000 new units, similar to the level of 2000. Find out why the love affair of Puerto Ricans with cars. How is the car market distributed among car makes? Will this trend be sustainable in light of the new car excise taxes, effective July 2002?

Puerto Rico Economic Pulse ©

July 2002: A Tough and Kind Rival

The Evolution of Euro and its Consequences for Puerto Rico

Euro has completed its first stage. Three years after being launched, the European currency seems to leave behind a stormy start and its second stage is under way. National currencies of the member countries have been withdrawn and notes and Euro coins have come into circulation. Undoubtedly, the U.S dollar has found a tough rival which poses a serious challenge as the predominant worldwide currency. This issue of Economic Pulse briefly reviews the evolution of Euro since its birth, the dimensions of its market, and the consequences for financial markets. Find out how this process will affect Puerto Rico. It is time to demonstrate that the positive effects of this new giant far outweigh its potentially negative consequences.

Puerto Rico Economic Pulse ©

June 2002: The Bitter Side of Development

Macroeconomic and Fiscal Impact of Population Trends

As the 2000 population census has confirmed, Puerto Rico is undergoing a demographic transformation. Following the pattern of developed countries, the Puerto Rican population is aging. In this article we will address this interesting phenomenon, which is a clear proof that development is not just about prosperity and also has its bitter side. Let`s briefly review the evolution of the island`s population over the last half century and analyze its economic and social consequences in the short as well as the long run. Find out how an aging population can exhaust fiscal revenues; how health and other related services will be more demanding on already finite resources.